23 Dec 2022
Are you aware of the fact that your savings account might not be able to save you from the economic turbulence that will occur in the near future?
Investing is an effective way to manage your finances and possibly grow your wealth. Your money may grow in value and outpace inflation if you make wise investment decisions at the right time. 2023 is the ideal year to send money to Pakistan for investments.
It is wise to start planning your future investments today. Below is a list of the top 5 investment options that can give you high returns in the future.
Cryptocurrency has been one of the trendiest investments over the past few years, partly due to price volatility. Coin values tend to change rapidly since they’re impacted by supply and demand and media attention.
As a result of the significant risks involved and the possibility for large returns on relatively modest investments, investing in cryptocurrencies has grown in popularity.
The most risk-tolerant investors are drawn to cryptocurrency. Cryptocurrency offers significant profits, but the price of the coin can fall sharply and unexpectedly.
Despite the decline in cryptocurrency in 2022, the market has expanded rapidly over the previous ten years. You most certainly experienced large increases if you kept your coins over the past three to five years. The market is expected to rise soon in 2023 and generate good returns.
The convenience and accessibility of cryptocurrency transactions are additional advantages. Both conventional brokers and online cryptocurrency exchanges like Coinbase allow you to purchase cryptocurrency. You can simply use money transfer online to purchase coins from the app.
Savings accounts might not immediately come to mind when you think of investing, but the goal is to maximise your financial return. A high-yield savings account is a secure way to achieve that with growing interest rates.
This can be an excellent place to start if you don't have a high-risk tolerance. However, it should be noted that while being a secure type of investment, it will eventually lose purchasing value. Your money will be worth less in the long run if inflation continues to rise faster than your rate of return. If you are a Pakistani overseas worker or expat supporting your family back home with a regular money transfer to Pakistan from abroad, you must consider a high-yield savings account.
For short-term savings or money, you only occasionally need access to, like an emergency or vacation fund, savings accounts are perfect. Some of the other investment alternatives on this list may better fit you if you're considering long-term profit.
Real estate investment is a long-term investment that demands significant funds upfront. However, the potential for significant profits means that real estate remains one of the most appealing assets.
To invest in real estate, you don't always need to be extremely wealthy. You can borrow money from your bank and repay it over time.
A technique to purchase real estate without owning or maintaining the property is through real estate investment trusts (REITs). If you're not interested in investing directly in real estate, REITs are businesses that own commercial real estate and pay out significant dividends.
Investors with the time and energy to maintain a property and are dedicated to long-term investing might consider real estate. Real estate investing demands a time commitment, but you can avoid this by choosing REITs instead.
Pakistan has shown great growth in the real estate industry over the past few years. You can send money to Pakistan online to purchase growth-potential properties and keep them for long-term profits.
Small-cap stocks are public company shares with a market value of between $500 million and $1 billion. Small-cap has the lowest between small, midsize, and large market capitalisations. Those who invest in small-cap stocks typically wager on the company's future growth.
A large-cap offering is above $10 billion. However, these businesses typically have higher starting prices. Therefore, compared to younger organisations, their growth typically has a lower percentage. For instance, a large-cap company could not have 300% growth in a single year, but that does not exclude them from experiencing meaningful growth. When you invest in small-cap stocks, you often support emerging businesses.
Higher-risk traders who don't mind holding their investment for a while are drawn to small-cap equities more. If you buy in small-cap stocks, you wager on a company's continued growth.
According to stats, small-cap equities have a higher potential for growth than large-cap companies. Online brokers offer small-cap stocks for trading.
Mutual funds or exchange-traded funds (ETFs) that invest in dividend-paying stocks are known as dividend stock funds. You can diversify your income with dividend stock funds and have a better investment portfolio. By diversifying your investments, you can reduce your reliance on any one firm.
When you invest in a dividend fund, you are betting that the firms that make up the fund will keep making money over time. You might receive rewards quarterly if you make wise choices.
Investors can profit from increases in the share price and dividends paid by the company, making dividend stock funds appealing. Dividend stock funds, unlike stocks, may distribute income quarterly if the business stays profitable.
If the business is profitable, you might get paid regularly in cash. You will earn if you invest in a company that keeps making money. Brokerage companies offer dividend stock funds for purchasing.
Experts suggest staying far away from bank transfers if you wish to transfer funds to another country for investments. This is because you will be sending a large amount of money. A huge portion of that amount will be deducted from transfer fees and exchange rates.
ACE Money Transfer is the leading remittance-sending service that has been operating on a global network since 2002. It is the ideal digital remittance transfer service because the transfer rate is extremely low compared to banks and other financial institutions. In addition to that, ACE also offers market-competitive exchange rates.
An expert suggestion is to start investing as soon as possible. There is no age to start investing. Pakistani expats living abroad should put their trust in the rising market potential of their home country and start looking for investment options there. Use ACE’s services to make every online money transfer to Pakistan without any cost and at the highest exchange rates.
